SINGAPORE: Half of the central banks polled in a DBS Bank survey say they are more interested in tapping Asian gold hubs, drawn by new state-backed infrastructure for storing and trading the precious metal.
The survey, commissioned by the bank and conducted in September by independent market research firm Kantar, was released yesterday.
Slightly more than half of asset managers and banks expressed similar sentiment.
However, implementation might still be a distance away, as only a quarter of central bank respondents said they were actively evaluating Asia-based gold hubs for storing official reserves.
Central banks are large buyers of gold, held domestically and overseas, to diversify their reserves and guard against inflation and other risks.
Li Zhen, head of foreign exchange and precious metals for global financial markets at DBS, said: “Trusted infrastructure, modern clearing and settlement, and financial product innovation are transforming access to gold.
“As the market evolves, investors and institutions will increasingly rely on trusted partners to provide the safeguards and certainty needed to participate with confidence.”
Although vaulting and storage infrastructure for precious metals has long existed in major financial centres like Singapore and Hong Kong, DBS said in a report drawing on the survey’s findings that infrastructure linked to the government or stock exchanges has been growing. The report, Gold In An Age Of Transformation, also noted that Singapore and Hong Kong have intensified their efforts to establish themselves as leading regional gold hubs.
It added: “Hong Kong is leveraging its role as a gateway to mainland China, while Singapore continues to build on its strengths as a financial and wealth management hub, underpinned by its reputation for stability and sovereign neutrality.
“Recent initiatives to enhance clearing, settlement and custody capabilities reflect a broader ambition to support the growing concentration of regional demand and investment activity.”
Singapore set out plans in March to boost its position as a gold trading centre, as investor interest in storing and trading the commodity here grows.
These include developing gold-related capital market products, establishing internationally aligned standards for vaulting and logistics, and building a clearing system to support over-the-counter trades of gold bars.
Banks in Singapore are also reportedly making moves to expand their vaults.
Bloomberg recently reported that DBS, South-East Asia’s largest lender, increased its vaulting space in 2026 in response to growing demand from its private wealth and institutional clients.
It also reported that OCBC Bank had approached precious metal storage providers about securing more space, citing anonymous sources.
Meanwhile, Hong Kong is working to expand its total gold storage capacity by more than 10 times to over 2,000 tonnes by 2030.
The city is also scaling its infrastructure to support larger trading volumes, with a central clearing and settlement system for gold to be launched in the first quarter of 2027. — The Straits Times/ANN
